Canada Post is conducting a review of its marketing program after the federal privacy watchdog found that it had violated privacy law by using Canadians’ personal information without authorization. According to a report by Privacy Commissioner Philippe Dufresne, Canada Post collected data to create mail-marketing lists that were rented to businesses under the program called Smartmail Marketing. This data included information about individuals’ living locations and online shopping habits. However, Canada Post did not obtain consent from individuals to collect this information for its marketing program, leading to a violation of section five of the Privacy Act.
Initially, Canada Post disputed the commissioner’s allegations but later addressed them in a statement, emphasizing the importance of maintaining trust with Canadians and committing to conducting a review of its data services program. During the review, Canada Post will increase transparency and awareness of its approach to using personal information and improve its opt-out programs. The postal service also expressed its willingness to collaborate with the Office of the Privacy Commissioner throughout the process.
The commissioner’s report highlighted that section five of the Privacy Act requires institutions to collect personal information directly from individuals and inform them of the purposes of collection, unless specific exceptions apply. The report recommended that Canada Post cease using and disclosing personal information obtained from its operational data for mail marketing purposes until obtaining consent from Canadians. However, Canada Post refused to take this recommended action.
Canada Post defended its actions by stating that it had to find new ways to generate revenue as the volume of letters declined over the years. The office of Minister Jean-Yves Duclos expressed concern over the allegations and reiterated the importance of protecting Canadians’ right to privacy. Canada Post, in the commissioner’s report, stated that it did not view its activities as contrary to the public good.
The investigation into Canada Post’s privacy violation began when an individual received marketing material from a local restaurant in Toronto that included his name and full apartment address on the envelope. The complainant reported that Canada Post combined information it had with publicly available data from the phone directory and sold it to businesses interested in marketing to individuals. Canada Post does not directly provide businesses with this information but discloses it to a third-party mail service provider for a fee.
Ann Cavoukian, executive director of the Global Policy and Security by Design Centre and former Ontario privacy commissioner, criticized Canada Post’s handling of personal information, calling it “absolutely outrageous” and emphasizing the loss of control over individuals’ data once it is shared with third parties.
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